Northwest EU rebar coils and bar prices re-align

The spread between prices of straight rebar and rebar in coil from northwest European mills has more or less zeroed after widening significantly last year, Kallanish hears from market players.

Until two years ago, the two sorts differentiated only on size extras, which equate to €265/tonne ($267) added for straight bar and €280 for coil. The gap formed during the Covid-19 pandemic and has since been cultivated by mills, as coil has become relatively scarcer. The premium for coil was easily €20-30/t, and in some transactions was reported reaching €100.

Some sources are still seeing premiums today of €20 or more, but others find the difference has vanished altogether. This would correspond with the suspension seen in demand. Previously, coil supply, especially, was tight – some sources even say it was limited deliberately by the mills. Now that supply exceeds demand, mills are pressured to sell with buyer-friendly conditions.

Base prices on the market have dropped further in July, and either sort is now seen at between €750/t and €800/t. Wire mesh is seen at around €900/t, the mark quoted for rebar only two weeks ago.

Christian Koehl Germany